Sabah Pan Borneo Highway: only 4 of 35 work packages complete, costs increased by RM1 billion – A-G report

Phase 1 of the Sabah Pan Borneo Highway project remains incomplete and prolonged delays have inflated costs by more than RM1 billion, according to the auditor-general’s report that was tabled in Parliament, reported The Star.

As of March this year, only four of the 35 work packages at a cost of RM567 million have been completed, while the remaining 31 work packages valued at RM16.319 billion were still under implementation, with nine classified as sick projects and 13 were behind schedule, the report wrote.

The auditor-general’s report, Series 2/2026 that was tabled in Parliament yesterday stated that the project was planned in 2015, with construction originally scheduled to take 69 months from April 11, 2016 to December 31, 2021.

Several issues affected the project were identified, including delays, unavailability of project sites before works began, utility relocation, design changes, weaknesses in project monitoring, non-compliance with regulations and contractual requirements, as well as weaknesses in project governance and management, according to the report.

The audit found weaknesses in project planning, implementation and monitoring that affected the completion period, implementation costs, achievement of project objectives and the benefits intended for the people, the report continued.

The delays affected development targets and the provision of safer, more efficient road networks for Sabah, while the overall contract cost had increased from RM17.91 billion to RM18.96 billion, the auditor-general stated, the news outlet reported.

“The current cost of Phase 1A is estimated at RM11.323 billion, exceeding the original project ceiling of RM10.336 billion by RM0.987 billion, or 9.5%. The overall project cannot be completed unless additional funding is approved by the government,” the A-G report said.

The audit found weaknesses in managing work variations, adhering to approval authority limits and contractual obligations, monitoring the project timeline, and following up on contractor delays and non-compliance, and it said these issues needed to be addressed to avoid financial and legal implications for the government, reported The Star.

Meanwhile for the Sarawak Pan Borneo Highway project, the A-G report said 10 work packages had been completed, while another, WP11, had reached 99.9% completion.

Add paultan.org as a preferred source on Google SearchAdd Follow paultan.org on Google NewsFollow